But I still got javac is not recognized as an internal or an external message. I tried having the path as: C:\program files\Java\jdk1.7.0\bin and as C:\program files\Java\jdk1.7.0_01 (as update 1) but neither worked.

i tried cmd, then path at the prompt and it looked as posted. Then I tried java -version and I had the right version, but when I typed javac I got the error message.

I checked the program files\Java\jdk1.7.0_01\bin folder and the javac.exe is listed along with java.exe.

I am not sure what's wrong. I followed step by step approach from both the oracle website and also from this website How to Install JDK 7

Re: Another javac error message

In the command prompt window go to the icon in the top left corner and click to get a menu. Then choose Edit->Mark. Drag the mouse over the area you want to copy and press <Enter>. At this point the section of the command prompt window text you have selected will be copied to the clipboard.